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"There's a huge amount of flight-to-quality moves right now. Only a policy coordination in Europe can stop this but markets can't find it now."
- Ayako Sera, senior market economist at Sumitomo Mitsui Trust Bank (based on Reuters)
Pair's Outlook
The Aussie dollar plummeted today against the US dollar on the release of preliminary quarterly GDP Price Index (1.7% act./1.5% est.). Therefore, if the pair moves downwards further, 0.9662 (November 2011 low; lower Bollinger band) and 0.9567 (S2 Weekly) are likely to in focus by the bearish traders. However, if the pair fails to fall, it could retrace to the weekly pivot point at 0.9812, a breakout of which would pave the way for 0.9900 (Upper resistance line) and 0.9935 (R1 Weekly).
Traders' Sentiment
Holders of long positions (55%) are in majority on AUD/USD relative to those who keep short positions (45%) on the currency pair. At the same time, within 100 points from the recent market price, 57% of investors expect the pair to rebound.
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